Samsung Electronics 5 Quarter Earnings Streak May Be Over
John Kim, Jan. 5, 2016, 7:39 a.m.
Samsung Electronics is forecast to report a fourth-quarter operating profit of around W6 trillion (US$1=W1,190). This will bring the electronics giant's profit growth to an end after five quarters. Samsung announces its preliminary quarterly earnings figures on Friday.
According to market researcher FnGuide on Monday, the average forecast for operating profit for Samsung was W6.6 trillion with W53.6 trillion for sales. FnGuide surveyed earnings projections by 13 brokerages.
But they are lowering their projections as the announcement date approaches. Industry insiders and analysts now expect Samsung's quarterly operating profit to be in the low W6 trillion range, around 10 percent lower than the previous quarter.
The performance this year, according to Choi Do-yeon at Kyobo Securities, will be similar to that of 2015. "By quarter, Samsung's earnings are expected to bottom out in the first quarter, which is a traditionally slow season, and improve gradually with the release of the new Galaxy S7 phone and rising sales of memory chips and OLED products," he said.